The bank had expected the rate to fall back sharply later this year and in 2011 as VAT and energy effects fade and the vast amount of slack in the economy kicks in.

But in minutes for the last meeting, rate-setters said they would "continue to monitor developments in inflation expectations closely".

The committee will also have details of the Bank's latest quarterly inflation report - to be published on Wednesday - as they make their decision and economists will be looking for details in the document for any modification of expectations.

Fears of a longer-lasting spike in inflation could be further exacerbated by a recent rise in factory gate prices.

Producer output prices rose at their fastest pace in 18 months in April, which economists suggested was down to higher oil costs and firms taking advantage of a recent recovery in activity to boost profit margins.

Howard Archer, chief UK and European economist at IHS Global Insight, said while he does not think the "nasty" factory gate prices would cause the MPC to alter policy this time around, they could prompt a "token rise in interest rates well before the end of the year".

The MPC was buoyed last month after a revision of UK growth figures to 0.4% for the last quarter of 2009.

Recent official estimates suggested that the recovery continued, albeit with less momentum, with a 0.2% expansion for the first quarter.

But Archer said that while first quarter growth was dragged down by January's poor weather, the data shows the economy is "far from racing back to health", while the debt crisis gripping Greece caused serious concerns about contagion, market turmoil and eurozone growth.

"On top of this, the Monetary Policy Committee will be keen to see how soon and how quickly fiscal policy is likely to be tightened now that the General Election is out of the way," he said.

"Unfortunately though, this may well take some time to come clear given the hung Parliament and deals that will have to be made."

David Kern, chief economist at the British Chambers of Commerce (BCC), said despite the positive economic news the recovery is "still vulnerable".

"Given the dangers facing the economy, the MPC must persevere with expansionary policies," he said.

"Any consideration of raising interest rates, and withdrawing the QE stimulus, must be rejected until evidence shows that growth is secure.

"At the same time, the leaders of the political parties must play their part by prioritising the economy."